Urban LandInstitute$

Ten Principles for

ReinventingAmerica’s

Suburban BusinessDistricts

Urban LandInstitute$

Ten Principles for

Reinventing America’s

Suburban BusinessDistricts

Ten Principles forReinventing

America’sSuburban Business DistrictsGeoffrey Booth

Bruce Leonard

Michael Pawlukiewicz

The Urban Land Institute gratefully acknowledges the financial support of Bank of America in underwriting this project.

About ULI–the Urban Land Institute

ULI—the Urban Land Institute is a non-profit education and research institutethat is supported by its members. Its mission is to provide responsible leader-ship in the use of land in order to enhancethe total environment.

ULI sponsors education programs andforums to encourage an open internationalexchange of ideas and sharing of experi-ences; initiates research that anticipatesemerging land use trends and issues andproposes creative solutions based on thatresearch; provides advisory services; andpublishes a wide variety of materials todisseminate information on land use anddevelopment. Established in 1936, theInstitute today has more than 16,000members and associates from some 60countries representing the entire spectrumof the land use and development disciplines.

Richard M. RosanPresident

Recommended bibliographic listing:

Booth, Geoffrey, et al. Ten Principles for ReinventingSuburban Business Districts. Washington, D.C.:ULI–the Urban Land Institute, 2002.

ULI Catalog Number: R37International Standard Book Number: 0-87420-889-0

Copyright 2002 by ULI–the Urban Land Institute1025 Thomas Jefferson Street, N.W.Suite 500 WestWashington, D.C. 20007-5201

Printed in the United States of America. All rightsreserved. No part of this book may be reproduced inany form or by any means, electronic or mechanical,including photocopying and recording, or by anyinformation storage and retrieval system, withoutwritten permission of the publisher.

ULI Project Staff

Rachelle L. LevittSenior Vice President, Policy and PracticePublisher

Dean SchwankeVice President, Development Trends andAnalysis

Marta GoldsmithVice President, Land Use Policy

Geoffrey BoothDirector, Retail DevelopmentProject Director

Michael PawlukiewiczDirector, Environment and Policy Education

Victoria WilburSenior Associate, Community Outreach

Nancy H. StewartDirector, Book ProgramEditor

Betsy VanBuskirkArt DirectorBook/Cover Design, Layout

Diann Stanley-AustinDirector, Publishing Operations

Cover photograph: Elkus/Manfredi, Esto Photographics, Inc.

ii

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Participants

Chair

A. Eugene KohnPresidentKohn Pedersen Fox AssociatesNew York, New York

Forum Director

Michael PawlukiewiczDirector, Environment and Policy EducationULI–the Urban Land InstituteWashington, D.C.

Developers

Geoffrey BoothDirector, Retail DevelopmentULI–the Urban Land InstituteWashington, D.C.

Nicholas JavarasDirector, Strategic PlanningShelter Bay Retail GroupMill Valley, California

Maureen McAveySenior Resident FellowULI–the Urban Land InstituteWashington, D.C.

Planners/Designers/Architects

Gary A. Bowden Professor of PracticeSchool of Architecture University of Maryland College Park, Maryland

Richard F. GalehousePrincipalSasaki Associates, Inc.Watertown, Massachusetts

David W. KitchensPrincipalCooper Carry ArchitectsAlexandria, Virginia

Bruce LeonardVice President, DesignStarwood UrbanWashington, D.C.

Market Analysts

Patrick PhillipsPresident, CEOEconomic Research AssociatesWashington, D.C.

Richard C. WardPresidentDevelopment-Strategies, Inc.St. Louis, Missouri

Transportation Specialists

Robert DunphySenior Resident FellowULI–the Urban Land InstituteWashington, D.C.

William RoacheSenior Vice PresidentVanasse Hangen Brustlin, Inc.Watertown, Massachusetts

Ken VoigtDirector of Traffic EngineeringHNTBMilwaukee, Wisconsin

Public Sector

Laura E. AldreteStapleton Project ManagerCity and County of Denver, Mayor’s OfficeDenver, Colorado

Terry Holzheimer Director of Business InvestmentDepartment of Economic DevelopmentArlington County, Virginia

Michael WanchickAssistant City ManagerCity of RichardsonRichardson, Texas

The key to successful real estate development and community building is tounderstand the psyche of the American people and move deftly to satisfy

changing market demands and needs in the real estate places we create. Majordemographic changes in America’s population are creating new but as yet unsat-isfied demands and opportunities. The real estate capital markets are looking forsafe havens secured by strong market demand. Traffic congestion, fiscal con-straints, and political opposition to significant road expansion programs arepointing to fundamental shifts in residential, office, and retail location and com-muting patterns.

Americans traveling extensively overseas and with more disposable income thanprevious generations are demanding far more from their living, working, andshopping environments. New approaches to governance and city planning arefostering the emergence of fresh approaches to development opportunities whileat the same time residential neighborhoods are closing their hearts and minds tosuburban expansion in their own backyards. There now exists a heighteneddesire for community interaction—people expressing the need to be with otherpeople in places close to where they live that are inviting, engaging, and safe.

These social and markettrends offer the potentialto transform America’smore than 200 suburbanbusiness districts intomore vibrant, pedestrian-friendly live-work-shopplaces, making them theemerging focus of smartgrowth. Currently, suchreinvented places are inshort supply, as most sub-urban business districtsencompass a disparategroup of isolated uses withlittle or no integration, atransportation system thatis automobile-oriented andoften hostile to pedestri-ans, and a near totalabsence of civic identity.

Preface

iv

America’s new demographic profile is gener-

ally affluent and well traveled and therefore

has developed a heightened appreciation of

place. Tired of traffic congestion, many of

today’s households are looking to trade in

their suburban lifestyle for one that gives

them more choices and flexibility. They are

looking for integrated live-work-shop places

that are exciting, aesthetically pleasing, and

pedestrian-friendly, and that offer numerous

transportation options.

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The transformation of suburban business districts demands a new form of commu-nity building that relies on both the vertical and horizontal integration of office,retail, residential, and community uses through the creation of places thatAmericans find so special and irresistible that they visit them again and again,invest in them, or choose them to reside in. These new trends can mark the turn-ing point for smart growth in the suburbs, with the focus of the land use industrymoving to the creation of pedestrian-friendly places that lift the spirit—specialplaces that have been designed, built, and maintained to satisfy the full spec-trum of human needs and aspirations, from the mundane to the inspirational.

In late June 2001, the Urban Land Institute convened a task force of 17 plan-ning and development experts, under the chairmanship of ULI Trustee A. EugeneKohn of Kohn Pedersen Fox in New York. Over two and one-half days, the taskforce was briefed on the research and analysis that were to form the basis of

v

Attributes of Existing Business District TypesCentral Compact Suburban Fragmented Suburban Dispersed Suburban

Attributes Business District Business District Business District Business District

Development density High Medium Low Very low

Floor/area ratio 5.0 and above 2.5 and above 0.5 to 2.5 Up to 0.5

Building coverage 75 percent or 50 percent or 25 to 50 percent Up to 25 more of lot area more of lot area of lot area percent of lot area

Lot area Less than one acre Less than one acre Greater than one acre Generally exceeds ten acres

Street layout Grid Grid Superblock Superblock

Land value Very High High Medium Low

Spatial separation Very low Low High Very highbetween buildings

Buildings Yes, buildings Yes, buildings No, buildings set back No, buildings set backdominate space? built to street built to street from road and from road; often one

alignment alignment separated by to two stories in heightsurface parking lots in campus/park setting

Parking cost Subject to charge Subject to charge Free Free

Dominant parking type Garages Garages Surface parking Surface parking (restricted access) (restricted access) (restricted access) (unrestricted access)

Quality of transit service Citywide, frequent District-centric, Local, infrequent Local, very infrequentless frequent

Pedestrian orientation Very strong, encourages Strong, encourages Weak,often no Very weak, developmentsand quality of public pedestrian activity pedestrian activity pedestrian linkages; far apart and not withindomain encourages patrons walking distance

to drive to adjoiningdevelopments

Dependence on Low Moderate High Very highcars for access

Choice in mode Very good Good Poor Very poor of transit

Examples Downtown, Rosslyn, Tysons Corner, College Boulevard–Washington, D.C. Arlington County, Fairfax County, Overland Park,

Virginia Virginia Kansas City, Kansas

Source: Geoffrey Booth, Urban Land Institute, 2001.

ULI’s new book, Transforming SuburbanBusiness Districts, visited suburbanbusiness districts in the metropolitanWashington, D.C., area, and then de-vised ten principles to underpin strate-gic planning aimed at reinventing sub-urban business districts.

The task force found that a sense ofplace within business districts wasdetermined by a range of factorsincluding development density, spatialseparation between buildings, pedes-trian interconnections, street layout,and choice in mode of transit. It isthese factors that have played a largepart in the resurgence of central busi-ness districts in the 1990s and thatwill be the focus of smart growth andthe reinvention of suburban businessdistricts.

In reinventing suburban business dis-tricts, the task force considered itessential that its ten principles beapplied during the strategic planningand development stage in order tomaximize the place-making dividend—the intrinsic value that accrues to acommunity when districts possess astrong sense of place that in turnresults in high levels of repeat visits,increasing rents, retail sales, leasingdemand, and capital value. Such a divi-dend occurs when individual real estateprojects are so well designed and inter-connected that they work as one inte-grated place.

vi

Compact suburban

business districts typ-

ically consist of big

buildings on small

lots close together.

Fragmented suburban business districts include big buildings on large

lots that separate the buildings from one another and therefore pro-

mote vehicle trips.

Dispersed suburban business districts generally consist of low-rise

buildings on spacious lots scattered over a large area.

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Ten Principles

Understand Your Position in the Market

Build Community Support

Develop a Vision and a Plan

Stress Results over Regulation

Break Up the Superblocks and Optimize Connectivity

Embrace Mixed Use

Honor the Human Scale by Creating a Pedestrian-Friendly Place

Think Transit—Think Density

Create a Public/Private Partnership

Share and Manage Parking

The essential foundation of any strategic plan for reinventing a suburban busi-ness district is an understanding of the demographic and market trends that

influence that district and its associated opportunities. It is vital to understandthe suburban business district’s position and potential in the market vis-á-visother competing districts in the region. Too many competing districts within aregion can lead to a surplus of retail space, lease restrictions, and low rents thatfrustrate rather than facilitate the transformation of suburban business districts.An oversupply of development entitlements thus can undermine the effectivetransformation of suburban business districts. To identify opportunities for invest-ment and growth, both development interests and state and local governmentsmust understand and evaluate trends in multifamily residential, retail, office, civic,cultural, and community development on the basis of local market circumstances.

A clear, concise evaluation of potential public revenue sources and of thestrength of the local tax base is essential. Based on fiscal assets and liabilities,the strategic plan can set forth priorities for both the private and public sectors

11Understand YourPosition in the Market

2

The comparative shortage of workers in

the next decade will prompt office tenants

increasingly to locate in pedestrian-friendly

suburban business districts that offer their

employees advantages such as access to a

variety of uses and services—for example,

restaurants, retail services, and nightlife.

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that have a realistic prospect of being achieved.Such a lucid analysis of market potential also canact as the investment prospectus that attracts theattention and capital of investors. Suburban busi-ness districts that decisively transform theirdevelopment configuration, density, and mix ofuses to become pedestrian- and transit-friendlywill reap dividends in the form of enhanced realestate value, community building, and tax base.

The precise strategy for each suburban businessdistrict will vary with local circumstances andneeds. Understanding your position in the marketinvolves:

■ Identifying all competing suburban businessdistricts in the region.

■ Detailing the range of goods and services provided in each competing suburban businessdistrict.

■ Identifying the market reach and attraction ofyour suburban business district.

■ Concentrating on the market niche that yoursuburban business district can satisfy.

■ Developing the investment prospectus that tar-gets the form of development and range of usesthat will enhance the attraction and performanceof your suburban business district.

3

The Avenue at White Marsh near Baltimore is

a lifestyle and entertainment center that uses

cinemas, restaurants, lifestyle stores, and out-

door gathering spaces to promote community

interaction and convey an upscale ambience

in a middle-income market.

Too many competing districts within a region can lead to a surplus of retail

space, lease restrictions, and low rents that frustrate rather than facilitate the

transformation of suburban business districts. An oversupply of development

entitlements thus can undermine the effective transformation of suburban

business districts.

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Community building involves the mobilization of public and private capitalto create assets that engender pride and value in a community. It involves

the activation and growth of community support through stakeholder consensus.The transformation of suburban business districts relies on a three-way partner-ship of the private sector, government, and the broader community. Communityoutreach must be ingrained in the process from the outset.

Many community-building projects have failed or wasted precious time andfinancial resources either in litigation or in gaining community support becauseessential communication channels were not established at the beginning. In

essence, such communication builds understandingand trust. The three-way partnership should bebuilt on a firm foundation of shared goals and, atthe very least, should include a fair and openprocess that allows all interested parties to beheard before decisions are made and implemented.

The use of the Internet, architectural renderings andvirtual computer models, public meetings, communi-ty workshops, community advisory groups, towncenter stakeholder meetings, local press briefings,design charrettes, and/or public/private partner-ships combine traditional with more innovativetechniques to tap community advice, understand-ing, and support.

These instruments should facilitate an explicitprocess of decision making that enables the transformation of the suburbanbusiness district to proceed step by step to an outcome welcomed by a majorityof the stakeholders. The process should have a limited time frame and a focuson outcomes. Caution should be exercised to ensure that the process is not sub-verted by parties with a vested interest in delaying the transformation of thesuburban business district.

Citizen opposition to development, often termed NIMBYism (not in my backyard), will less likely be an issue in suburban business districts for the simple rea-son that districts generally lack a residential component. Nonetheless, communityconcern over traffic congestion and other issues makes it essential that the plan-ning, regulatory, and marketing tools used for the transformation of suburbanbusiness districts are visual and accurately simulate the real-life impact that pro-posed development would have if such proposals are to gain citizen support.

22Build Community Support

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The Internet can be used to convey images

of proposed design solutions and inform the

community of dates and venues for future

community meetings.

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The communication process betweendeveloper and government needs to beheld to a high standard, particularly asgovernment agencies may need to playa financial role in support of a project.The process should identify explicitlywho is responsible for making whatdecisions while also focusing on trans-parency and the building of trust andunderstanding among all stakeholders.Finally, local government support isabsolutely crucial in that land usemost frequently is a matter of local government control. Without an entitlement,there is no right to develop, no potential income stream, and therefore no bank-able development project.

Building community support involves:

■ Creating a three-way partnership among the private sector, government, andthe broader community.

■ Establishing a process that allows each partner to be heard, thereby inform-ing and reinforcing decisions that guide the reinvention of the suburban busi-ness district.

■ Ensuring that all partners remainfully informed of progress and alert toany action by those with a vestedinterest in delaying the transformationof the suburban business district.

■ Creating an understandable andtimely process for delivering govern-ment entitlements and approvals tofacilitate implementation of theprocess.

5

Communities such as Old Town Alexandria

have remained strong because the opportuni-

ty to interact has been nurtured by the physi-

cal form of the place and reinforced through

the weekly market held in the town square.

It is essential that planning, regulatory, and

marketing tools are visual and accurately

simulate the real-life impact that proposed

development would have if it is to gain

citizen support.

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W ith a proper understanding of market potential and community and gov-ernment needs and aspirations, a development vision of what is feasible

can be shaped and a strategic plan can be devised that will enable its realization.While the vision needs to be tempered with realism, it should also be bold andinnovative, drawing on the history, character, and strengths of the community. Asuccessfully transformed suburban business district will become a community cen-ter that offers a range of live-work-shop opportunities seamlessly integrated intothe surrounding community through strong pedestrian interconnections.

The strategic plan that guides implementation of the vision must have communi-ty support and draw on expert professional advice. It must also be financiallyfeasible and able to enhance tax revenues. Suburban business districts comprisenumerous buildings, and the spaces between those buildings, if properly concep-tualized and redesigned, can interconnect to create a sense of place. It is thesense of place that the community recognizes and rewards, thereby creating realestate value through increased rents, retail sales, and growing capital value—

the place-making dividend.

The strategic plan is the management tool through whichthe place-making dividend is achieved and sustained.Unless a strategic plan is implemented, it is not worth thepaper it is written on—or the time and money invested inits preparation. A substantial investment in comprehensivedevelopment conceptualization will enhance the place-

33Develop a Vision and a Plan

6

Using the existing street to accommodate

transit can provide the suburban business dis-

trict with freedom of choice in transportation

mode and create a more pedestrian-friendly

place. A typical suburban commercial street

is shown (top) and its proposed new form

(below) illustrating how dramatically subur-

ban business districts can be reinvented.

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making dividend and the realization of the communityvision for the reinvented suburban business district.

Developing a vision and a plan involves:

■ Establishing a vision of the reinvented suburbanbusiness district in terms of market potential, ubandesign, and a clear understanding of community needsand aspirations.

■ Adopting a bold and innovative planning and devel-opment approach, tempered by realism that draws onthe history, character, and strength of the community.

■ Formulating a strategic plan with the assistance of experts drawing on the support and knowledge of the community.

■ Monitoring to ensure that the strategic plan implements the vision.

■ Encouraging all development agencies and individuals to commit to compre-hensive development conceptualization and delivery in accordance with theintent and purpose of the strategic plan.

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The Addison Circle plan (Addison, Texas)

integrates mixed-use retail and residential

development into the surrounding suburban

business district.

The Courthouse Hill develop-

ment in Arlington, Virginia,

was designed to provide a

transition from the high-rise

residential development to

the adjoining detached hous-

ing neighborhoods within the

suburban business district.

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Essential to the transformation of suburban business districts is a shift fromthe segregation of land uses through zoning to the creation of mixed-use

and integrated development through place making. The regulatory tools appliedduring the 20th century to mandate and con-trol place making have proven seriously inade-quate and in most cases counterproductive investing suburban business districts with asense of place.

In concentrating on legally prescriptive andexclusionary zoning codes, communities havecome to rely on a flawed mechanism to con-vey the vision of the places they wish to cre-ate. Black-letter law and legal terminology donot evoke the full power of the visual sense,and they certainly do not trigger the compan-ion senses of sound, smell, taste, or touch.Only humans possess the intrinsic skill toassess the quality of place by using all the

senses. The literal interpretation of the law, with its limited and limiting vocab-ulary and legal style, fails to evoke a sense of place or capture the imaginationin the way good writing or a film can.

The advent of new planning instruments based on visioningprocesses, however, aid the regulatory process by making itpossible “virtually” to create places that we can experiencebefore we approve and construct them. With visioning pro-cesses, we can use our senses to assess the quality of aproposed project and its contribution to place making. Usingthis approach, the strategic plan, in digital form, can usereal-time interactive design models synchronized with soundto evoke a three-dimensional sense of place.

Through a thorough process of consultation and the cre-ation of a development vision, the land use entitlementprocess for suburban business districts could shift frominflexible zoning codes to strategic plans that allow greaterflexibility and encourage the district and its componentdevelopments to be progressively modified to meet ever-changing community needs and aspirations. As EugeneKohn said during deliberations of the ULI task force,

44Stress Results Over Regulations

Most metropolitan office space is located out-

side the CBD, like this isolated pod of office

buildings.

Typological zoning

codes seek not just

to control land use

entitlement but also

to dictate building

type and location.

This is a prescrip-

tive but inflexible

form of zoning that

may be difficult to

change as commu-

nity needs and aspi-

rations change.

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“Land use controls should allow projects to be modified tomeet changing community needs without necessarily trig-gering a new entitlement process.” The strategic plan is not one that works toward a final state but rather one thatdemands ongoing management and refinement. A strategicplan that lacks flexibility to change and evolve is inherent-ly flawed.

Stressing results over regulations involves:

■ Recognizing that the zoning system needs to bereformed so that zoning no longer focuses on the separa-tion of uses but rather on the creation of places that peo-ple will find so special that they will visit them repeatedly,invest in them, and choose them as residences.

■ Ensuring that strategic plans and regulatory instrumentsdraw increasingly on all the senses to evoke the specialsense of place that is desired.

■ Refining the new planning instruments based on “commu-nity visioning” so that plans and development projects canbe presented in a digital form whereby they virtually can beexperienced before they are approved and constructed.

■ Developing a new breed of land use and place-makingcodes that are flexible and responsive to changing communi-ty needs, allowing the timely approval and modification ofdevelopment entitlements that comply with the strategicplan’s purpose and intent.

9

The visualization of place through real-time, near-motion-picture-

quality interactive computer modeling provides the platform to

move beyond zoning to place making.

These new parking facilities and the new pedestrian linkages in

Uptown Houston work together to reduce traffic congestion by

decreasing the need to drive from one suburban business district

establishment to another. They also optimize retail sales by creat-

ing pedestrian linkages that connect and expose patrons to retail

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Transforming a suburban business district from a collection of geographicallyclose but segregated real estate projects into integrated places allows

customers and clients to patronize a variety of establishments more easily. Nolonger forced into their cars to move from one establishment to another, patronsand clients can park their cars once for the duration of the stay, thereby reduc-ing the amount of space that otherwise would be needed for on-site parking ateach establishment.

At the same time, the reduced number of vehicle trips within the suburban busi-ness district translates into lower levels of congestion and allows the width andcapacity of internal roads to be reduced while the district itself gains statureand takes shape as a real place. Integrating uses requires pedestrian-friendly,fine-grid development that engages and never intimidates the pedestrian; itoffers interconnectivity and easy walking distance from one use to another.

The value of real estate derives from the intensity and interconnection of itsuses. The essence of community is human connection and a sense of belongingto an identifiable place and an active public realm. Initially, both tenants and

55Break Up the Superblocks andOptimize Connectivity

The inherent strength of

Country Club Plaza in Kansas

City, Missouri, is its mix of

retail, entertainment, resi-

dential, and office uses, all

of which are provided within

a compact and aesthetically

pleasing pedestrian- and

transit-friendly environment.

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investors found standalone real estateprojects in suburban business districtssimple to understand and easy toaccess. As discrete packages, invest-ment markets found them simple tofinance and digest. Further, with thegrowing number of comparable devel-opments, appraisers could readilydetermine a project’s capital value.Increasingly, standalone projectsreflect a compartmentalization ofcommunity life.

Interconnectivity can be improvedthrough better signage and way-findingto encourage intradistrict movement,improved road layouts, and circulationpatterns; the provision of shuttle busservice; and the strategic location of parking areas and sidewalk connections. Theintegration of development, the provision and management of shared parking, thecreation of mixed uses along pedestrian linkages, and the increase in density aroundtransit stations can be effective tools in breaking the cycle of traffic congestionwhile creating more pedestrian- and community-friendly living environments.

Main streets can provide a greater variety

of sensory experiences with the use of built

and natural forms, sculptures, and color in

a configuration that invites shoppers to

explore and enjoy.

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Office locations that offer transportation

options and more than a 9:00-to-5:00 range

of activities promote travel at other than

peak hours.

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The supergrid plat in the Irvine Business

Complex is typical of many suburban

business districts throughout America.

The traditional grid plat of streets and blocks

on a 400-foot centerline to centerline.

Superblocks can cover an area of up to 12

grid blocks, making them difficult for pedes-

trians to navigate, thereby promoting the use

of vehicles leading to traffic congestion.

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Mixed-use develop-

ment can reduce trip

generation, spread

the peak-hour flows

on arterial roads,

make transit provi-

sion more cost-effec-

tive, and allow more

people the option of

living closer to their

place of employment.

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Breaking up superblocks and optimiz-ing connectivity involve strong politi-cal leadership and, often, the catalyticinvestment of public funds in:

■ Breaking up superblock plats andreorienting roads and vehicle circula-tion patterns.

■ Improving pedestrian linkages.

■ Providing or enhancing public open space.

■ Establishing community uses.

■ Developing structured parking.

■ Creating public/private partnerships.

■ Establishing special taxing district and tax-increment financing mechanisms.

■ Providing public transit before there is the demand to support it.

These two plans, drawn at the same scale,

show how a compact business district can

facilitate pedestrian circulation and promote

a more transit-friendly environment.

Distinctive, informal gathering places within the public realm are sorely lacking in most subur-

ban business districts.

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Compact suburban business district. Fragmented suburban business district.

Mixed uses create critical mass and a sense of place by affording the com-munity a wider range of goods, services, and experiences at one location,

thereby increasing connectivity and choice and reducing trip generation rates.The diversification of use within projects hedges a district’s income stream andmakes for proper and balanced risk management of property investments.

Not surprisingly, after a half-century of segregated uses, consumers are growingmore discerning about the environments in which they want to live. By provid-ing a range of choices, mixed uses can play a critical role in transforming sub-urban business districts. Most suburban business districts would benefit fromthe addition of multifamily housing, increased development densities to supporttransit, and the mixed-use development of voids and open parking lots to cre-ate more pedestrian-friendly environments.

To establish and reinforce a sense of community in a suburban business districtrequires a critical mass of mixed uses—a rule of thumb suggests a minimum of200,000 square feet of retail uses and 2,000 dwelling units within a ten-minutewalk of each other. Office uses feed retail operations by supplying customers forstores and restaurants both during the day and after work. Retail uses withinwalking distance of employment or residences—restaurants, bookstores, clothingstores, gift shops, and coffee bars—reinforce amenities that allow and encour-age employees and residents to go out to lunch or run errands without relyingon their cars. The addition of theaters, museums, art galleries, libraries, post

66Embrace Mixed Uses

Multifamily residen-

tial units, when inte-

grated into the fabric

of the suburban busi-

ness district, provide

a constant customer

base for shops,

restaurants, enter-

tainment venues,

and local businesses.

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offices, and townhalls that areproperly integrat-ed into suburbanbusiness districtsattracts signifi-cant pedestriantraffic, which supports a rangeof other uses.

Embracing mixed use involves:

■ Removing planning and regulatory barriers in the form of land use controlsand onerous parking requirements that prohibit mixed-use development.

■ Encouraging government and community incentive and support for mixed-usedevelopment by providing parking garages, public domain improvements,streetscaping, and transportation choices.

■ Designing the reinvented suburban business district so that pedestrian pathsoffer opportunities and choices in location of retail, education, community, andresidential land uses.

■ Clustering and intercon-necting activities that ben-efit from collocation andmixed use, such as office,retail, residential, and tran-sit-oriented uses.

■ Providing communityinfrastructure and facilitieswithin reinvented suburbanbusiness districts rather than on standalone sites ingreenfield locations accessedonly by automobile.

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Mixed-use town center developments can

provide office workers with a complete live-

work-shop environment.

When it relocated to Valencia Town

Center, Princess Cruises gave its labor

force amenities such as housing choices,

restaurants, shops, entertainment venues,

and a health club—all within walking

distance of its office.

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Establishing a live-work-shop environment with a sense of place is a com-munity need as well as an aspiration. Place making is the essence of real

estate development. As people choose one place over another, the place of choiceattracts a higher value and sells at a premium. Places that are desirable appeal toall the senses—sight, sound, smell, taste, and touch. They are a rich mix of localactivities, aesthetic design, quality, and price. Successful place making is aboutmeeting demand from the local community. It is not a formulaic real estate prod-uct or the latest fad. Therefore, developers are motivated to exercise a high levelof conceptualization and market matching in their place-making activities.

Besides allowing people to perform essential functions such as holding jobs andshopping, places should be enjoyable, entertaining, and educational. Success inplace making lies in configuring spaces and structures and the interconnectionsbetween and among them in a way that facilitates and encourages human activi-ty and interaction—an environment that people want to be a part of because ithas been designed, built, and maintained with the goal of satisfying the fullspectrum of human needs and aspirations from the mundane to the inspirational.A successful place appeals to the senses, engaging visitors and inhabitants alikein a voyage of discovery of enticing sights, sounds, and scents.

Honoring the human scale by creating a pedestrian-friendly place involves astrong focus on improving the public domain and the design and activity within

the streetscape and public placesspecifically as related to:

■ Controlling the length and width ofthe public domain or street.

■ Slowing the speed and reducing thenumber of vehicle movements.

■ Enhancing lighting, finishes, andstreet furniture.

■ Expanding the range of availableactivities.

■ Matching the scale of developmentto human comfort and a sense ofbelonging.

■ Ensuring that users can “feel at home”and navigate easily within the area.

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77Honor the Human Scale byCreating a Pedestrian-FriendlyPlace

The human factor in sculptures enhances

community appreciation of art and creates

a sense of place.

High-quality, well-located community parks

are vital place-making components of

suburban business districts.

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■ Ensuring a continuity of pedestrian-friendly, street-level activities.

■ Incorporating art, architecture, and community icons.

■ Providing on-street parking and ease of access to off-street parking garages.

■ Creating pedestrian linkages lined with interesting and enticing activities.

■ Providing transportation choices.

■ Maintaining clean, safe, and diversified streets where people of all ages andraces, visitors and residents, come together to celebrate community life.

■ Providing public parks and community gathering places that are alive withcivic and cultural events.

■ Stimulating interest and community life through activity along the street.

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The place-making dividend is

maximized with the shopping

street configuration, but less so

with the strip mall facing the

parking area configuration.

Bollards, trees, custom-

designed pole lighting,

and distinctive paving

add to the mix of textures,

and carts and kiosks help

provide the diversity that

creates place, as shown

in this photograph of the

Promenade at Westlake

in California.

Shopping Streets

Strip Mall

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W ith increasing public awareness of the cost of traffic congestion, subur-ban business districts that offer a choice of transportation options and

more than a 9:00-to-5:00 range of activities—and thus promote travel at otherthan peak hours—will enjoy a competitive advantage. Leasing agents through-out the United States report that clients view access to mass transportation andrich cultural activities as the two pluses of intown property that are not foundin outlying counties. Culture and transportation add value because they attract ayoung workforce, which employers seek.

Independent research of office market performance over the past 15years has found that a significant percentage of office tenants willpay a rental premium for transit-linked offices—a factor that willbecome increasingly important as employers are forced to competefor a reduced labor supply that demands more transportation choices.With increased development density, especially around transit sta-tions, a suburban business district can become more compact; space

between buildings will be reduced, resulting in better integration and pedestrianinterconnections.

Increased density supports the cost-effective provision of a wider range of useand transportation systems. However, a commitment to development density car-ries with it a responsibility for excellence in place making that goes well beyondthe architecture of individual buildings, contributing to the fabric, connectivity,and attraction of the place’s total components. Careful attention must be paid indesign to the eradication of the “weakest links” as they will only serve to under-mine community acceptance of increased development density. It is the criticalmass of activity that comes with increased development density that provides

88Think Transit—Think Density

4 units/acre 6 units/acre 7 units/acre 9 units/acre 12 units/acre over 15 units/acre

Hourly Local Bus Regular Dial-a-Bus Half-Hourly Local Bus Trolley Rapid Rail Express Bus

With each successive wave of suburban busi-

ness district development, density has

decreased and buildings have become more

dispersed.

Higher densities make

transit more cost- and

energy-efficient. Minimum

densities are shown in

this diagram, but average

densities will vary with

suburban business district

size and distances.

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Source: Boris S. Pushkarev and Jeffrey M. Zupan, Public Transportation and Land Policy (Ontario, Canada: Indiana UniversityPress/Bloomington and London, 1977).

residents with choices, reduces congestion, secures proper-ty values, and provides a sustainable tax base.

With available options such as walking, bicycling, and tran-sit use, vehicle trips and required parking areas are reducedalong with the level of traffic congestion. Multifamily hous-ing integrated into the suburban business district furtherpromotes transportation choices. More balanced government transportationspending should enhance the accessibility of existing community and real estateassets rather than providing, as it has to date, the means to abandon existingcongested locations for greener pastures at the urban fringe and beyond. Thosesuburban business districts that fail to balance automobile access with improvedpedestrian and transit access will put their future patronage, attractiveness, andcapital value at risk.

Thinking density and transit involves:

■ Meeting the community’s emerging needs to provideemployment locations with a range of ancillary activitiesand services in addition to office space.

■ Increasing development density and building interconnec-tions and pedestrian linkages to enable the cost-effectiveprovision of a wide range of uses and transportation systems.

■ Safeguarding the future prosperity of the reinventedsuburban district by protecting it from traffic congestionand providing it with an enhanced level of transportationchoice and accessibility.

Higher-density development and pedestrian-

friendly streetscapes in compact suburban

business districts provide a greater choice of

activities and a good reason to walk.

Transit can be a critical tool for transforming

suburban business districts.

The utilization of a fine grid layout that is

pedestrian-friendly can provide for convenient

locations for bus transit routes and stops.

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In most cases, the successful transformation of a suburban business districtdepends on the ability of the private and public sectors to cooperate under a

partnership arrangement that engenders community support, minimizes projectrisk, and delivers place-making dividends to all stakeholders. The place-makingdividend accrues to both the developer and the community. Therefore, it is onlyfair that both should invest in its creation by way of a partnership that lever-ages the investments of both.

Business improvement districts (BID) or redevelopment agencies can establishthe public/private management entities that can use tax-increment financing(TIF) or special tax levies to fund capital and recurrent expenditures in the cat-alytic transformation of a suburban business district. Government agencies canlocate educational facilities, hospitals, libraries, government employees, commu-nity centers, and parking garages in suburban business districts to reinforcetheir drawing power and sense of place.

A suburban business district can use TIF financing to break up the superblockplat and provide better pedestrian interconnectivity within the suburban busi-ness district. This can be pivotal to the transformation process and is unlikely to

occur without a public/private partnership. Therealization of the strate-gic plan cannot relysolely on developerlevies or a zoning andentitlement process thatoften works against thetransformation process.To be most effective, thestrategic plan for rein-venting the suburbanbusiness district mustbecome the vehicle forcoordinating the poli-cies, programs, and fiscalpriorities of each level ofgovernment so as totransform suburban busi-ness districts into newlive-work-shop places.

99Create a Public/PrivatePartnership

The new CityPlace in West Palm Beach,

Florida, is the result of a $500 million public/

private partnership investment that demon-

strates what is possible in transforming an

underperforming business district into an

exciting live-work-shop place.

Business improvement districts can use a

special tax levy on landowners to provide

for services such as maintenance, sanitation,

security, promotions, and special events,

and in some cases, for capital improve-

ments, such as the signage shown in this

photograph, as well as street furniture,

special lighting, and streetscaping.

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Public Financing Tools

■ Tax-increment financing.

■ Tax abatements.

■ Parking bonds.

■ Land leases.

■ Low-income housing tax credits.

■ Transit-oriented development funding—Transportation

Equity Act for the 21st Century (TEA-21) funds.

■ Loans and grants.

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Spring Street

Fenton Street

Way

ne Ave

nue

Georgia Avenue El

lswor

th D

rive

Retail

Retail

Retail

Shops

ShopsShops

Shops

Shop

s

GatewayPlaza

Parking

Parking

Parking

Drive

TownSquare

CivicBuilding

Residential

City Place

Entertainment

SilverTheatre Shops

and Restaurantswith Cinemas

Above

Hotel

Office

Cedar Street

The business improvement district program can market suburban

business districts to the community—using festivals, events, sales

promotions, maps and newsletters, image enhancement and advertis-

ing campaigns, and directional signage—to create and reinforce a sub-

liminal pattern of repeat visitation.

The successful redevelopment of Silver Spring, Maryland, as a

transit-oriented suburban business district is being undertaken

by a public/private partnership between Montgomery County

and private developers.

Creating a public/private partnership involves:

■ Ensuring that the investment in the partnership deliversa fair and just dividend to each party.

■ Using business improvement districts, tax-incrementfinancing, and an appropriate selection of public financingtools to leverage private sector capital committed to thereinvention of the suburban business district.

■ Establishing a government commitment to enhancepedestrian interconnections and place-making initiativeswithin the suburban business district.

■ Coordinating policies, programs, fiscal priorities, and service location activities of each level of government to harness all public resources in the implementation of the strategic plan.

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Each development that stands alone must provide its own on-site parking.Devoting large portions of a site to surface parking lots encourages patrons

to rely on the automobile and, at the same time, prevents integrated develop-ment and ensures that density will be so low as to preclude the provision of cost-effective transit. The predominant driver of development form and configurationbecomes parking. It is therefore vital in the transformation of suburban businessdistricts that the place—not the parking facility—becomes the destination.

In one typical U.S. city, for every car, five parking spaces cur-rently are provided, which means that accommodating a pro-jected 1 million increase in population over the next 20 yearswill require an additional 685,000 parking spaces, or 37square miles of surface area. Under these circumstances, itbecomes virtually impossible to go from one building toanother without driving.

One solution is to increase the number of parking structuresand improve parking design and placement, which can re-duce the land area devoted to parking and allow buildingsto be closer and more integrated with each other. Struc-tured parking facilities generally become cost-effective whenthe price of land for the development reaches $30 per squarefoot; below this land cost, surface parking often is more

cost-effective. Therefore, public involvement in garage construction may berequired to achieve the place-making dividend.

The strategic location, design, and programming of parking structures also can cre-ate or enhance attractive, well-traveled pedestrian linkages that can reduce theneed for cars and thus for parking spaces. Moreover, the use of ground-level spacein parking structures for retail and services can create a more attractive streetscapeand pedestrian environment, encouraging more pedestrian trips. On-street parkingcan provide attractive and effective parking arrangements in retail areas.

Another solution is to allow and plan for shared parking within mixed-use areas.When properly managed, shared parking can reduce the maximum number ofparking spaces required, as different users can park in the same space for differ-ent purposes at different times of the day and week, thus reducing the effects ofpeak demand from a single land use. A mixed-use environment also can decreasethe need for parking by increasing pedestrian trips.

For example, a restaurant/delicatessen within walking distance of office workersat lunchtime will require fewer parking spaces than a restaurant that can be

1100Share and ManageParking

22

Surface parking consumes vast acreage, cre-

ates an unattractive pedestrian environment,

and increases the space between buildings.

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reached only by car. Offices located within easy walking distance of a hotel mayrequire fewer parking spaces for visitors than other offices; business guests stay-ing at the hotel will be able to walk to offices. Finally, the strategic location ofshared-parking facilities can create well-traveled pedestrian linkages that can belined with shops and cultural and civic activities.

Parking involves an opportunity cost, as it takes up potentially developableland. Even so, free or low-cost parkinglikely will remain a feature of suburbanbusiness districts. For this reason, localgovernment funding or underwritingoften will be required to cover the dif-ference in construction costs betweensurface parking lots and parkinggarages. Aside from charging nominalparking fees to help pay costs, costsalso can be defrayed by renting out theground floor of the parking garage torestaurants and shops. First-floor retail

23

Using the ground floor

of a parking garage to

accommodate restau-

rants and shops can

provide additional

cash flow as well as

an active streetfront

in suburban business

districts, as shown

in this photograph

of Walnut Creek,

California.

In Mizner Park, residential buildings face

the parking structures, which enhances

the streetscape as well as the return on

the project.

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uses lining structured parking facilitiescreate an active streetfront, as inWalnut Creek, California. In MiznerPark in Boca Raton, Florida, the park-ing structure is separated from thestreet by a row of multifamily apart-ments.

One innovative parking policy andfinancial solution has involved thecity developing the parking structuresfor its business district and then, aspart of the entitlement process, re-quiring all future developments to buya share of the structures rather thanprovide parking on their own sites. Itis essential to provide no more parking

than is required for the economic viability of the development and to require theincorporation of shared-parking provisions into strategic plans in place of man-datory zoning and parking codes. Where possible, tenants should be charged atleast a nominal rent so that parking is recognized as a service with an attendantcost. The rental fee becomes the basis for the parking structures’ treatment andvaluation as a real estate asset that can then be leveraged.

Sharing and managing parking involves:

■ Locating and constructing parking garages and lots that encourage ground-level activity and make pedestrian linkages attractive.

■ Using parking facilities for shared parking, serving multiple uses rather than asingle use.

■ Providing leasable space along the frontage or on the ground floor of parkinggarages to generate cash flow and offset the capital cost of construction.

■ Charging a nominal rental or parking charge where possible in suburban busi-ness districts.

■ Exploring the option of requiring that parking for new development withinthe suburban business district is purchased at cost from the government authori-ty’s stock of parking garage spaces and not provided as surface parking withinthe development site.

24

The town or village center, if it is pedestrian-

and transit-friendly, promotes community

use and encourages the establishment

around it of mixed uses that add diversity

and interest to the suburban business dis-

trict. It also provides the focal point for the

provision of cost-effective transit.

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25

Carpe Diem—Seize the Day

In the proposed Kendall development in

Miami, Dade County, Florida, the banks

of Snapper Creek are to be transformed

through the use of infill development. The

photographs of the existing development

(below) and the proposed redevelopment

(bottom) capture the extent of the planned

transformation.

If they are to realize their potential, suburban business districts must be rein-vented as more functional, more diverse, more interconnected, and more

pedestrian-friendly places than they are today. They likely will be linked byimproved transit service and will emphasize good pedestrian linkages and place-making standards beyond the realm of traditional zoning provisions. Public agen-cies most likely will be called upon to become full financial partners in the rein-vention of suburban business districts.

At the same time, far from being abandoned as a mode of transportation, theautomobile should be put in proper perspective and become a choice in a bal-anced offering of transportation options. Growing opposition to governmentspending on the expansion of infrastructure, and the proliferation of smartgrowth programs, will curtail severely the practice of abandoning establishedareas for new greenfield development on the exurban fringe. Indeed, employersfaced with a tight labor market will compete for the best employees by toutingthe quality of life that distinguishes the areas in and around their place ofemployment.

Reinventing suburban business districts effectively can only happen when a strongpartnership among the community and the public and private sectors is developed,focusing on the implementation of a new vision to achieve a sense of place.

By meeting the changing needs and aspirations of Americans,the reinvented suburban business district will reap the richreward of the place-making dividend—for the community (as a place that the community owns and loves), for the govern-ment (as a place that generates tax streams), and for the private sector (as a place that attracts strong visitation andsales, rental incomegrowth, and increasedcapital values). Theresult will be the verybest that smartgrowth has to offer.It can be achievedthrough the timely,resolute, and intelli-gent application ofULI’s ten principlesfor reinventing subur-ban business districts.

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$ULI–the Urban Land Institute1025 Thomas Jefferson Street, N.W.Suite 500 WestWashington, D.C. 20007-5201

ULI Order #R37

ISBN 0-87420-889-0

Ten Principles forReinventing America’sSuburban BusinessDistrictsGeoffrey Booth, Bruce Leonard, andMichael Pawlukiewicz

Fresh ideas and development opportuni-ties are emerging in response to trendsin demographics, traffic congestion, fis-cal constraints, and opposition to subur-ban development. Based on a study con-ducted by a team of planning and devel-opment experts, this booklet describeshow reinventing suburban business dis-tricts can deal with these trends andissues and can address the changingneeds of the community. Both the publicsector and the private sector will find itan invaluable guide in creating a strategicplan for transforming suburban businessdistricts into attractive, pedestrian-friendly places where people can live,work, and shop.

Ten place-making principles include:

■ Realistically assessing the market position and potential for a suburban business district.

■ Building community support by developing consensus among citizens, government, and the private sector.

■ Developing a strategic plan that is supported by the community and that draws on professional expertise.

■ Rethinking existing zoning regulations to allow mixed uses that can be modified over time as the needs of the community evolve.

■ Creating interconnected, pedestrian-friendly, mixed-use districts from existing isolated superblocks.

■ Embracing mixed uses that offer the community a wider range of goods, services, and experiences in one location.

■ Creating pedestrian-friendly places that encourage interaction.

■ Offering a choice of transportation modes, such as pedestrian, transit, bicycle, and automobile options.

■ Forming public/private partnerships tominimize risk, develop strategies, and implement change.

■ Sharing and managing parking to reduce the number of spaces requiredand consolidating more uses within buildings to encourage pedestrians.

Related titles from theUrban Land Institute

Ten Principles for Reinventing America’sSuburban Strips2001/Order #R35

Transforming Suburban BusinessDistricts2001/Order #T16

The Smart Growth Tool Kit2000/Order #S52

Smart Growth: Myth and Fact1999/Order #S50

Transforming Suburban Business DistrictsGeoffrey Booth et al.

Creating places where people can live, work,and shop is the next hot trend in the realestate industry. This new book explains howchanging demographics, a time-short popula-tion, and traffic congestion are driving theredevelopment of suburban business districts.You will learn about the roles of residential,retail, and office development, transportationoptions and parking, and the public and pri-vate sectors in creating vibrant, attractiveplaces that appeal to the capital markets aswell as to the community. 2001/229 pages/paperback/ISBN 0-87420-881-5Order #T16/$39.95 ULI Member/$49.95 List

Order online at www.uli.org or call 800-321-5011.

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